Silver Price Analysis: XAG/USD tanks as the US Dollar stages a comeback, despite poor US data


  • XAG/USD drops from around $25.40s to $24.10s as US inflation cools and the labor market eases.
  • The RSI indicator and 3-day RoC portray a bearish outlook for Silver, with the 200-DMA on sight.

Silver price plummets across the board, as data from the United States (US) showed that inflation is cooling down, while the labor market commences easing amidst US Federal Reserve (Fed) officials complaining about its tightness. US Treasury bond yields drop, but the US Dollar (USD) rises to new weekly highs, a headwind for XAG/USD prices. At the time of writing, the XAG/USD is trading at around $24.20, slides 4.50%.

XAG/USD Price Analysis: Technical outlook

The XAG/USD collapse dragged prices into testing the 50-day Exponential Moving Average (EMA), breaking on its way south two crucial support levels: firstly, the 20-day EMA gave way around $25.08, secondly the break of the two-week support trendline at around $24.63, which, accelerated the white metal downtrend, towards testing additional key support levels.

Silver is challenging a five-month-old previous resistance trendline, turned support at around $24.20, which, once broken, the XAG/USD could drop to the $24.00 figure, followed by the 100-day EMA at $23.46. A breach of the latter will expose the 200-day EMA at $22.74.

Conversely, if XAG/USD reclaims $24.63, that could pave the way toward $25.00 a troy ounce. That would form a bullish hammer, shifting Silver’s bias to the upside, and it might open the door to test the year-to-date (YTD) high of $26.13.

The Relative Strength Index (RSI) indicator turned bearish after crossing the 50-midline. The 3-day Rate of Change (RoC) portrays sellers in charge as the XAG/USD extends its slide throughout the day.

XAG/USD Price Action – Daily Chart

XAG/USD Daily chart

XAG/USD

Overview
Today last price 24.18
Today Daily Change -1.21
Today Daily Change % -4.77
Today daily open 25.39
 
Trends
Daily SMA20 25.32
Daily SMA50 23.75
Daily SMA100 23.39
Daily SMA200 21.81
 
Levels
Previous Daily High 25.92
Previous Daily Low 25.22
Previous Weekly High 26.14
Previous Weekly Low 24.58
Previous Monthly High 26.09
Previous Monthly Low 23.57
Daily Fibonacci 38.2% 25.49
Daily Fibonacci 61.8% 25.66
Daily Pivot Point S1 25.1
Daily Pivot Point S2 24.81
Daily Pivot Point S3 24.4
Daily Pivot Point R1 25.8
Daily Pivot Point R2 26.21
Daily Pivot Point R3 26.5

 

 

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